Credit Information Sharing, Bank Size and Bank Credit Risk

Using the non-performing loan rate to proxy bank credit risk, this paper focuses to examine the impact of the level of regional credit information sharing on the credit risk of urban commercial banks. We find a significant negative relation between the level of regional credit information sharing and the non-performing loan rate of banks. It shows that higher level of regional credit information sharing leads to lower bank credit risk. Improving the level of regional credit information sharing is conducive to reducing bank credit risk. Further analysis, distinguishing the size of banks, reveals that this negative relation exists obviously in both large-scale and small-scale urban commercial banks, and the negative impact is more obvious in small-scale urban commercial banks. Small-scale urban commercial banks do not have information advantages and scale advantages, so improving the level of credit information sharing is more conducive to improving credit quality and reducing credit risk for small-scale urban commercial banks.